ST Engineering Annual Report 2020

Environment: Environmental Protection GHG Emissions In 2020, the Group achieved a 33% absolute GHG emissions reduction with 2010 as the base year. This translated to a 44% reduction in GHG emissions intensity, which is on track with our current intensity target of 36% reduction by 2030 with 2010 as the base year. Our Singapore operations continued to be verified in accordance with ISO 14064-1:2006. We decided to set our new GHG emissions target in 2021 instead of 2020 so that we can assess the impact of COVID-19 and align those efforts with our journey to adopt the relevant recommendations from the Task Force on Climate-related Financial Disclosures (TCFD). To further reduce our indirect emissions, we continued to commission solar PV systems for our buildings, increasing the total number of roofs to 24 in 2020. Solar power accounted for 8% of our annual electricity consumption in Singapore and by employing solar power, our GHG emissions was reduced by 3,610 tonnes of Carbon Dioxide Equivalent (tCO 2 e). We also contracted additional solar PV systems to cover four more roofs which will come on stream in 2021 and 2022 and increase our green power percentage to over 9.5%. To further reduce our carbon footprint, we are progressively replacing our fleet of internal combustion engine vehicles with electric vehicles in the coming years. At the same time, we will continue to replace our ageing Air Handling Units to improve the overall energy efficiency of our cooling systems. Water Consumption We continued to manage our water consumption judiciously through regular monitoring of consumption patterns and the installation of water-efficient fittings in our facilities wherever feasible. In 2020, the water consumption intensity of our Singapore operations increased by 4.4% compared to the 2015 base year, mainly due to an increase in manufacturing activities. We have started to track our water consumption intensity in the U.S. and to explore ways to reduce it. Waste Management As part of our long-term commitment to protect the environment, we continued to manage our waste through reduce, reuse and recycle initiatives. Improving our waste management system and reducing waste at source will continue to be the focus of our waste management initiatives. We have also taken steps to ensure more is done towards responsible waste management. We replaced styrofoam with environmentally friendlier alternatives such as melamine cups, encouraged staff to bring their own foodware and required vendors to adopt recyclable packaging. In 2020, we recycled 54% of 11,700 tonnes of material and waste generated. The recyclables included waste oil, metal, wood, tyres, paper and batteries. We recognise the threat of global warming and the importance of combating climate change. We believe in conserving resources to minimise the impact of GHG emissions, reducing pollution and waste, and conducting our operations efficiently. We contribute to a more sustainable future by developing and deploying greener products and solutions. SUSTAINABILITY / ST ENG I NEER I NG 80